These South Bay and Peninsula cities are raking in enterprise capital
Although the area generally known as Silicon Valley covers dozens of municipalities, just a few cities get outsized consideration in tech circles. Everybody is aware of Palo Alto, Mountain View, San Jose and San Francisco as hotbeds for startup innovation.
However they’re not the one ones.
Much less-talked-about cities within the area are additionally raking in funding, beating out main cities in different states for whole enterprise funding.
A number of days in the past, we checked out cities within the East Bay of the San Francisco Bay space with a excessive focus of funded startups. Right this moment, we flip our consideration to the Peninsula and South Bay areas, searching for who’s attracting well-funded startups. Listed here are among the cities that topped our record.
South San Francisco
This metropolis of 60,000 is well-known because the final place you drive via when going from San Francisco to the airport. Coming again, it’s additionally exhausting to overlook the well-known South San Francisco hillside signal that reads “South San Francisco, The Industrial City.” The motto is outdated, although, as South San Francisco, a metropolis based by the meatpacking business within the 1880s, has since remodeled right into a biotech powerhouse.
The transformation started in 1976, when Genentech opened there, and it has been on a roll ever since. Greater than 40 South San Francisco biotech and healthcare corporations have raised funding previously 5 years, and no less than 12 introduced in $40 million or extra of their final rounds.
The largest funding recipient, most cancers remedy developer Stemcentrx, additionally delivered one of many largest biotech exits ever final yr when pharma large AbbVie agreed to purchase it for $5.eight billion up entrance and as much as $four billion in milestone funds. Different closely funded biotechs embody NGM Biopharmaceuticals, a developer of medicine to deal with cardio-metabolic and liver ailments, and Freenome, a developer of non-invasive cancer-screening instruments.
In whole, South San Francisco corporations have raised greater than $1.1 billion in enterprise funding over the previous three years. That’s greater than the complete state of Connecticut and about eight instances as a lot as Rhode Island.
Whereas Sunnyvale is named the house of Yahoo, its actual property market is usually considered as extra depending on close by Apple than the previous web darling. “Million-dollar homes with fewer rooms than your first apartment” may very well be the motto of this quiet ‘burb.
However other than excessive housing prices, Sunnyvale boasts a classy startup ecosystem that pulled in additional than $1.four billion over the previous three years. Which means this metropolis of 140,000 has raised greater than the complete state of Arizona and greater than double the VC funding for the state of Oregon over the identical interval.
Sunnyvale’s startup scene isn’t dominated by anyone sector. There are closely funded corporations in safety, , biotech and even autonomous autos. Illumio, a cybersecurity supplier, raised essentially the most capital of any native startup over the previous three years, adopted by Quanergy, a developer of LiDAR sensors and software program for 3D mapping.
The town has loads of startups which have grown into multi-billion-dollar corporations, too. A number of of these bought to acquirers lately, together with safety supplier Blue Coat Methods, which Symantec purchased final yr for $four.65 billion, and community infrastructure supplier Aruba Networks, which bought to HP two years in the past for $three billion.
And, after all, there’s Yahoo.
Milpitas fought a battle for independence 56 years in the past, and it received. It confronted annexation by a land-hungry neighbor, town of San Jose, and a bunch generally known as the “Milpitas Minutemen” got here collectively to struggle for the city’s independence.
Since then, Milpitas has developed in a sprawling, tech-infused city dotted with workplace parks and newish housing developments. It’s possible because of the Minutemen that Milpitas, and never San Jose, can now declare itself headquarters of SanDisk and LSI Logic, two corporations swallowed up in among the largest semiconductor acquisitions of latest years. Because of them, Milpitas also can name itself dwelling to startups which have raised greater than $650 million over the previous three years.
A metropolis of practically 80,000, Milpitas drew extra VC funding over that interval than Indianapolis (inhabitants 850,000). A single firm, View, is accountable for over half of the overall funding haul, having raised $400 million previously two years to commercialize a line of dynamic glass that robotically modifications tint. Subsequent largest is Beamreach (previously Solexel), a developer of photo voltaic panels that raised greater than $200 million in enterprise funding earlier than submitting for chapter earlier this yr.
The remainder of Milpitas’ venture-funded corporations signify all kinds of sectors, together with biotech, VR and enterprise software program. The combo is considerably harking back to its bigger neighbor, San Jose. However make no mistake; this isn’t San Jose.
Santa Clara, dwelling of Intel, Utilized Supplies, the brand new San Francisco 49ers stadium and a number of costly homes, is a significant hub for venture-backed startups. Corporations on this metropolis of 120,000 have raised greater than $1.four billion over the previous three years.
The central pillar of the startup ecosystem right here is enterprise know-how. Suppose safety, cloud storage, software-defined networking and deeply geeky, sophisticated applied sciences that profit from a expertise pool crammed by Cisco, Intel and others. The largest recipients of funding within the final couple of years embody CloudMinds, a developer of distributed computing know-how for AI-enabled robots, and Cohesity, developer of a hyper-converged platform for storing backup knowledge.
Regardless of its heft as a know-how powerhouse, nevertheless, Santa Clara doesn’t get a number of particular recognition as a tech hub. It’s usually lumped within the larger sprawl generally known as Silicon Valley. A contributing issue could also be that the opposite cities it borders, which embody Sunnyvale, Milpitas and San Jose, aren’t any slouches in tech, both.
The place have all of the orchards gone
The know-how prowess of all these Peninsula and South Bay cities is all of the extra spectacular when one considers what a short while they’ve needed to develop. Previous to World Battle II, the world was finest generally known as a middle for fruit harvesting and canning. Right this moment, essentially the most useful firm right here might bear the identify of a fruit, but it surely focuses on (a lot) larger margin merchandise.
Illustration: Li-Anne Dias
Nelia Nashville, Senior Content Editor at .com and Writer of many eBooks on Tech Startups Launch and Tips on How To Get Funded For New Startups. Views and Comments Totally mine. For corrections or re-publication of articles that are not mine, please follow the links under the content for links to owners.
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